Shared Ownership Mortgage & Rent Calculator
Calculate monthly costs of shared ownership homes — mortgage on your share, rent on the housing association share, and total monthly outgoings.
Shared Ownership Guide
How Shared Ownership Works
Shared Ownership lets you buy a share (10-75%) of a property and pay rent on the rest. Owned by housing associations or registered providers. Key requirements: household income usually below £80,000 (£90,000 in London). First-time buyer or unable to afford suitable property otherwise. Cannot own another property. Newer schemes (2021+): minimum 10% share, 1% increments for staircasing, 10-year repair allowance from landlord. Older schemes: minimum 25% share, larger staircasing increments. Propert
Rent on Unsold Share
Rent typically charged at 2.75-3% per year of the unsold share's value. Example: £300,000 property, 40% owned. Unsold share: £180,000. Annual rent at 2.75%: £4,950. Monthly: £413. Plus mortgage on the £120,000 you own. Rent reviews: annually, usually CPI inflation plus 0.5-1% — can rise significantly during high inflation periods. Service charge: additional monthly cost for shared building maintenance, lifts, communal areas. £100-300/month typical. Total cost calculation: total monthly = mortgag
Staircasing — Buying More Shares
Staircasing: buying additional shares in your property over time. Older schemes: minimum 10% increments. Cost: pays current market value of additional share — not original price. Newer schemes (2021+): 1% increments. £1,500 + admin/valuation fees per increment. Issues: valuations are at current market value, so during rising markets staircasing becomes more expensive over time. Mortgage costs rise as your share increases. Final staircase to 100%: takes you out of shared ownership entirely. Pros:
Risks and Considerations
Major considerations before buying shared ownership: selling can be difficult. The housing association has first refusal (8-12 weeks). Limited buyer pool for shared ownership resale. Repairs and maintenance: you are responsible for 100% of repair costs even though you only own a share. Recent reforms address this for new builds (10-year repair allowance) but not older properties. Lease length: most are leasehold. Check length carefully — under 80 years becomes problematic. Service charge increas
Recommended for this calculator